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Forums - Gaming Discussion - Ubisoft reveals profit margins for physical versus digital sales on console

Wait, Sony and Microsoft on the same line?! People here told me that Sony doesn't get the 30% digital revenue that the other platform holders get because of their size and other factors. This has to be a mistake on Ubisoft's part.



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Yeah, I get why pubs want that digital push, but I will continue buying bigger releases physical thanks to services like GCU and Prime. I just buy digital for sales when games hit really low prices.



I always claimed Sony got 30% of digital sales. Kerotan vindicated.



shikamaru317 said:

I kind of feel bad for buying physical games at $20 now. If I'm reading that right, the publisher only gets $3 on a $20 physical sale, versus $13 on a $20 digital sale. No wonder the publishers are pushing digital so hard. 

Wut. Where'd you get that from?

The pub gets $11 from a $20 physical sale, versus $14 from digital.

 

As for the percentages - nothing surprising. Straight 30% fee is the standard digital distributor fee.



shikamaru317 said:

I kind of feel bad for buying physical games at $20 now. If I'm reading that right, the publisher only gets $3 on a $20 physical sale, versus $13 on a $20 digital sale. No wonder the publishers are pushing digital so hard. 

Then why not make the games significantly cheaper in digital? They are going to earn more from digital regardless.



You know it deserves the GOTY.

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shikamaru317 said:
Teeqoz said:

Wut. Where'd you get that from?

The pub gets $11 from a $20 physical sale, versus $14 from digital.

 

As for the percentages - nothing surprising. Straight 30% fee is the standard digital distributor fee.

20% is the licensing fee + cost of goods from Microsoft/Sony/Nintendo for making a retail game ($12, and from previous conversations with industry figures, this is static regardless what you're charging).

Seems previous interviews have indicated that it's a flat $12 fee regardless of the price of the game, so it's $12 regardless of rather it's a $60 game or a $20 game. 

$20 - 25% retailer margin = $15

$15 -$12 platform holder fee = $3

Damn what the hell. 12$ flat fee? But that makes no sense. Why have a 12 dollar flat fee on physical, but have it be a 30% fee on digital? Either that's not right, or it could be some ploy from the platform holders to discourage physical for indies... But Ubisoft's report says "out of a hundred". If the 12$ was a flat fee, then they wouldn't say that.



So, basically, +15% on digital over physical. Yep, that's worth pushing.



pokoko said:
So, basically, +15% on digital over physical. Yep, that's worth pushing.

Don't forget the $12 fee! For a $60 game, that's already 20%, and it's even more for cheaper games. In fact, it's so much that this is almost hard to believe.



Zkuq said:
pokoko said:
So, basically, +15% on digital over physical. Yep, that's worth pushing.

Don't forget the $12 fee! For a $60 game, that's already 20%, and it's even more for cheaper games. In fact, it's so much that this is almost hard to believe.

It is hard to believe :-|



Ka-pi96 said:
Teeqoz said:

It is hard to believe :-|

Well that part is from one of those "insiders" and saying hard to believe shit and hoping some of it just happens to be true is kind of their forte

Indeed, it was never mentioned in Ubisoft's presentation (which actually notes that this is "out of a hundred").